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EU to weigh single issuer
for government bonds

By

Ren&eacute;e Schultes and

Natasha de Ter&aacute;n

Updated May 6, 2008 12:01 a.m. ET

The European Commission will this week float the idea of a single European government-bond issuer, a move that could lead to greater liquidity and enhance the euro's standing as a reserve currency. It could also challenge the dominance of the U.S. Treasurys market.

The commission's work is still in early stages and had been raised and dismissed before. It will float the idea on Wednesday as part of a statement to mark the 10-year anniversary of the first 11 member states fulfilling economic and monetary union criteria. The...